When it comes to marketing and advertising, there’s no definitive answer as to how much brand visibility should cost. Every business follows a unique set of practices when it comes to promotional activities.
However, there are some general guidelines that businesses can follow when determining their budget for brand visibility initiatives. A good rule of thumb is to allocate a percentage of your overall sales revenue to brand visibility efforts.
That said, these are just general guidelines—it’s ultimately up to you to decide how much you’re willing to spend on promoting your brand. Nonetheless, here are some general insights and tips to help you make a more informed business decision.
Brand visibility is the level of exposure your brand has in the marketplace. It encompasses all the touchpoints where potential customers might see or interact with your brand.
Think of it as the sum total of your brand’s presence in the world. This process may include everything from traditional advertising placements to sponsorship deals to social media marketing.
The goal of brand visibility is to increase the chances that potential customers will come into contact with your brand and eventually make a purchase.
According to one survey involving 1,400 small businesses, the average marketing costs for small businesses are about $30,000 per year. This is for companies with a size of about 20 to 50 employees.
In the same study, companies with more than 50 employees reported allocating a larger budget for marketing. This shows that the scale of a business does have some bearing on how much it’s willing to spend on brand visibility.
In a study by the U.S. Small Business Administration, the recommendation is that small businesses should allocate 7 to 8 percent of their gross revenue to marketing and advertising. This is assuming that the business is enjoying profit margins of about 10 to 15%.
There are several factors you’ll need to consider when deciding how much to spend on brand visibility.
Here are four key points to keep in mind.
Target demographic
A B2B and B2C-oriented business have vastly different target audiences, and their brand visibility efforts will be geared towards these groups. Your industry and business type will dictate the types of marketing channels you’ll need to use to reach your target audience.
A 2020 survey by Deloitte found that B2C-oriented businesses tend to spend more on their marketing efforts than B2B businesses.
Ranked in order from highest allocation to the lowest, the exact percentages reported from the study are as follows:
Digital infrastructure
An important aspect of brand visibility in the digital age is having a strong online presence. This means having a website that’s optimized for search engines and mobile devices, as well as active social media accounts for your businesses.
To have a strong online presence, you’ll need to invest in digital marketing tools and services. These can come in a variety of practices, such as:
Each of these digital marketing tools and services comes with its own costs. They also require a specialist’s touch—you’ll need to hire someone with the relevant skills and experience to handle these tasks for you.
As such, you’ll need to factor in the costs of digital marketing when deciding on your brand visibility budget.
Competitor’s efforts
If you’re spending less on brand visibility than your competitors, then you’d likely be at a disadvantage when promoting your brand. This is especially true if you’re trying to penetrate a saturated market.
Research your competitors and find out how much they’re allocating for their brand visibility efforts. Getting a good ballpark estimate can help you make data-driven decisions on whether to bolster or maintain your current marketing efforts.
In addition to understanding competitor efforts, knowing how to differentiate your own brand is just as important. For example, Australians can stand out from the rest of the competition by using 1300 numbers. Having a national number makes your business appear more professional and credible when your potential customers try to reach you.
Learn more about the benefits and costs of 1300 numbers.
Opportunities within the community
Community marketing is a very underrated yet powerful marketing strategy, especially if you’re targeting locally.
Supporting local causes and initiatives is a great way to get your business name out there and build goodwill within the community. It’s also a less costly way to promote brand visibility as compared to other traditional marketing channels like billboard or radio advertisements.
Some examples of community marketing initiatives include:
By aligning your brand with these causes or events, you’re not only promoting brand visibility but also building a positive reputation for your business. And this can mean all the difference when it comes to attracting new customers and clients.